BlackBerry loses US$1bn, axes 4500 staff

Last updated 07:49 21/09/2013

Relevant offers

World

Infratil tipped to make $1.8b in selloff Refunds offered after MH17 crash MH17 crash spells likely end for Malaysia Airlines APN buys out Hong Kong firm Markets plunge after plane disaster Politicians lack business savvy: Murdoch MH17: Is this the end for Malaysia Airlines? Microsoft to cut 18,000 jobs this year Real Madrid the world's richest sport franchise Google lawyer turned landlord inflames anger

BlackBerry says it will lay off 4500 employees, or 40 per cent of its global workforce, as it reports a nearly US$1 billion (NZ$1.2b) second-quarter loss in a surprise early release of earnings results.

The stock dropped 19 per cent to US$8.50 after reopening for trading. Shares had been halted pending the news.

BlackBerry had been scheduled to release earnings next week. But the Canadian company said late Friday afternoon it expects a loss of about US$950 million to US$995 million for the quarter, including a massive inventory charge due to increasing market competition.

The BlackBerry, pioneered in 1999, was the dominant smartphone for on-the-go business people and other customers before Apple debuted the iPhone in 2007. Since then, BlackBerry Ltd. has been hammered by competition from the iPhone as well as Android-based rivals like Samsung.

Ad Feedback

- AP

Special offers

Featured Promotions

Sponsored Content